GLENCORE MERGER CONFIRMED
07 Feb, 2012
The ‘merger of equals’ between Glencore and Xstrata has been confirmed.
The commodities giant and the mining heavy weight are joining forces, creating a firm worth around $80 billion.
The announcement that this deal was on the cards earlier in the month, had a noticeable effect of the share prices of each company. Glencore shares were up by 5.4 per cent in London, whilst Xstrata shares were up by an impressive 10 per cent.
The merger has been described as ‘broadly positive for Glencore’s shareholders’ by Charles Cooper, an analyst at Oriel Securities and Glencore Chief Executive, Ivan Glasenberg has said that the new firm will be ‘a new powerhouse in the global commodities business’, according to the BBC.